Senate Bill 2382

(As Sent to Governor)

AN ACT TO AMEND SECTION 83-17-5, MISSISSIPPI CODE OF 1972,
TO DELETE THE WORD "CONTINUOUS" IN REGARD TO INSURANCE AGENT
CERTIFICATES; TO AMEND SECTION 83-17-75, MISSISSIPPI CODE OF 1972, TO CLARIFY
THAT AN INSURANCE PRODUCER WHO IS NOT ACTING AS AN AGENT OF AN INSURER IS NOT
REQUIRED TO BECOME APPOINTED; AND FOR RELATED PURPOSES.

83-17-5.
Every agent of any insurance company, fraternal order or association
authorized to do business in this state shall be required to obtain from the
Commissioner of Insurance a * * *
certificate under the seal of his office showing that the company for which he
or she is licensed to do business in this state, and that he or she is an agent
of said company and duly authorized to do business for it. Such certificate shall remain valid as long
as the insurance company, fraternal order or association pays to the
commissioner an annual certificate fee to continue the authorization. The insurance company, fraternal order or
association must notify the agent within thirty (30) days if the authority is
nonrenewed or cancelled.

83-17-75.
(1) An insurance producer shall
not act as an agent of an insurer unless the insurance producer becomes an
appointed agent of that insurer. An
insurance producer who is not acting as an agent of an insurer is not
required to become appointed.

(2)
To appoint a producer as its agent, the appointing insurer shall file,
in a format approved by the commissioner, a notice of appointment within
fifteen (15) days from the date the agency contract is executed or the first
insurance application is submitted. An
insurer may also elect to appoint a producer to all or some insurers within the
insurer's holding company system or group by the filing of a single appointment
request.

(3)
Upon receipt of the notice of appointment, the commissioner shall verify
within a reasonable time not to exceed thirty (30) days that the insurance
producer is eligible for appointment.
If the insurance producer is determined to be ineligible for
appointment, the commissioner shall notify the insurer within five (5) days of
its determination.

(4)
An insurer shall pay an appointment fee, in the amount and method of
payment set forth in Section 83-5-73 for each insurance producer appointed by
the insurer.

(5)
An insurer shall remit, in a manner prescribed by the commissioner, a
renewal appointment fee in the amount set forth in Section 83-5-73.

(6)
Before the issuance of a license or certificate of authority, the
commissioner shall require the company requesting appointment of the applicant
as producer for the first time to furnish a certificate to the commissioner,
verified by an executive officer or managing general or special agent of such
company, that the company has duly investigated the character and record of
such person and has satisfied itself that such person is of good moral
character and is qualified, fit and trustworthy to act as its producer. The Commissioner of Insurance may at any
time require any company to obtain a credit report on a producer if the
commissioner deems such request advisable.
Should such credit report reflect information regarding an offense or
violation in relation to which the Department of Insurance has taken action,
such information shall not render the applicant ineligible for a license if
applicant has complied with the order of the commissioner regarding such
offense.

SECTION
3. This act shall take effect and
be in force from and after July 1, 2006.